Lululemon Athletica Inc. (LULU) is a leading athletic apparel company with a market cap of $21.5 billion. Based in Vancouver, Canada, the company designs, distributes, and retails technical athletic apparel, footwear, and accessories for both women and men under the lululemon brand. Lululemon operates globally through a combination of company-operated stores, e-commerce, and innovative retail formats such as pop-ups and re-commerce programs.
The company is gearing up to announce its fiscal Q3 2025 results, and analysts are expecting an EPS of $2.22, a 22.7% decrease from the year-ago quarter. Despite this projected decline, Lululemon has consistently exceeded Wall Street’s earnings estimates in the previous four quarters. For fiscal 2025, analysts anticipate an EPS of $12.90, representing an 11.9% drop from the previous fiscal year. However, the EPS is expected to rebound slightly in fiscal 2026, with a projected 1.2% year-over-year increase to $13.05.
Over the past 52 weeks, shares of Lululemon Athletica have declined by 42.5%, significantly underperforming compared to the S&P 500 Index and the Consumer Discretionary Select Sector SPDR Fund. Despite posting better-than-expected Q2 2025 EPS of $3.10, the company experienced a steep 18.6% drop in share price the following day. This decline was attributed to Lululemon’s revised annual revenue forecast of $10.85 billion to $11.0 billion and EPS guidance of $12.77 to $12.97, citing challenges in U.S. sales, product missteps, and anticipated tariff-related impacts on gross profit.
Analysts’ sentiment towards LULU stock is cautious, with an overall “Hold” rating. Of the 31 analysts covering the stock, three recommend a “Strong Buy,” 24 suggest “Hold,” two advise “Moderate Sell,” and two give a “Strong Sell” rating. The average analyst price target for Lululemon Athletica is $189.42, indicating a potential upside of 7.2% from the current levels.
In conclusion, Lululemon Athletica faces challenges in the near term, but analysts remain cautiously optimistic about its future prospects. Investors should closely monitor the company’s upcoming earnings release to gain insights into its performance and outlook. This article was originally published on Barchart.com and is intended for informational purposes only.
